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The 7.1-magnitude quake that struck southern Japan this week has brought many car and semiconductor factories in the area to a halt, but hopes are high that disruptions will be less severe than a similar-sized temblor that rocked the region a decade ago. Given Japan’s proneness to natural disasters, manufacturers have for decades sought to strengthen the resilience of parts supply and this latest quake, which has claimed the lives of 34 people, will be a test of how robust their efforts have been. Aisin, an auto supplier that makes doors, engines and other parts at a factory near the epicentre of Tuesday’s jolt, is a case in point, appearing to have suffered less when compared to 2016. Back then, its plant was severely damaged, causing shortages of a key door component used by Toyota that forced it to halt production at assembly plants nationwide. Aisin CFO Daisuke Kondo told reporters on Friday that earthquake resistance measures introduced at the site since 2016 had helped limit damage despite more intense shaking this time.
Full report : Japan quake halts auto and chip plants, testing supply chain resilience.